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Fundamental Concepts and Terminologies — Economics STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsFundamental Concepts and Terminologies3 Marks
Question
Give the characteristics of Trade cycle.
✓

Answer

  • Good and bad changes occurred in an economy is called trade cycle. Mostly below points are included in the features of trade cycle.
  • They depict dynamic changes and the positive and negative changes in the economy.
  • Economic rigging are done in the economy and during that time effects of production, employment, price level are studied in trade cycle.
  • During the situation of inflation there is good trade cycle and during recession there is bad trade cycle.
  • Trade cycle occurred periodically.
  • Through they do not show same regularity, they have some distinct phases such as recovery, peak, recession and depression.
  • That’s why it is called that two trade cycles are not twins but members of a family.
  • The effect of Trade cycle is macro hence it is not same for all the sectors.
  • The stages of peak or depression are not infinite.
  • Recession and expansion stage starts very slowly, after a time passes it works compound.
  • Investment and consumption of durable consumer goods are mostly affected by cyclical fluctuations.

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